Nigeria is open for stablecoin business – SEC DG

Dr Emomotimi Agama, Director-General of the Securities and Exchange Commission (SEC) says Nigeria is ready for stablecoin businesses that comply with the country’s regulations.

He said this on Thursday at the Nigeria Stablecoin Summit held in Lagos and organised by the Africa Stablecoin Network.

While delivering his keynote address titled “Building a Regulatory Framework for Stablecoin Innovation: The Nigerian Perspective,” Agama told stablecoin operators that stablecoin regulation is for the nation’s development.

He said, “When the history books document Africa’s financial revolution, today will be remembered as the moment we moved from potential to action.

“I stand before you as both a regulator and an advocate for responsible innovation. My message today is clear: Nigeria is open for stablecoin business, but on terms that protect our markets and empower Nigerians.”

Agama emphasised the critical role of stablecoins in Nigeria’s rapidly evolving digital economy.

“The digital economy in Nigeria is dynamic, youthful, and increasingly decentralised.

“Across the continent, freelancers, traders, and businesses are increasingly opting for stablecoin payments to hedge against volatility, a trend significantly amplified by the naira’s fluctuations, which have driven exponential growth in demand for dollar-backed digital assets.”

While acknowledging global regulatory approaches, Agama emphasised the need for localised solutions.

“However, Africa needs African solutions, regulatory frameworks that reflect our market conditions, demographic realities, and development priorities,” he said.

He noted that a cornerstone of this framework is Nigeria’s Investment and Securities Act (ISA 2025), which received presidential assent earlier this year.

Agama explained that the ISA 2025 includes forward-looking provisions for digital asset regulation, anticipating that this will provide a firm legal foundation for oversight of stablecoins and other digital assets.

Addressing common concerns about regulation stifling innovation, Agama said, “Are we stifling innovation? The evidence says no. Our regulatory sandbox continues to attract interest from both local and international startups.”

He highlighted the success of this approach, as he said, “We have onboarded some firms focused on stablecoin applications, all while ensuring compliance with core risk management principles.”

Agama envisioned a positive future for Nigeria in the digital financial landscape, saying, “Five years from today, I want to see a Nigerian stablecoin powering cross-border trade from Dakar to Dar es Salaam.

“I want to see global capital flowing into Lagos as the stablecoin hub of the global South. This is not just finance. This is nation-building.

“This is not just finance. This is nation-building,” he said.

Also, Mr Nathaniel Luz, President of the Africa Stablecoin Network, commended the Federal Government of Nigeria for welcoming stablecoin technology to the country.

He said, “This move is a significant step toward fostering a thriving and regulated digital asset ecosystem across Africa.

“The conference is the first of its kind in Africa, and its goal is to bring together players and regulators for a brighter and more regulated space.

“We thank the government for the friendly regulation. Nigeria stands to benefit a lot from stablecoin as an emerging market.”